Court held that for allowability of bad debt the assessee is required to debit profit and loss account and also to simultaneously reduce loans of debtors in balance sheet however none of the authorities had examined the issue in this angle in deciding the matter. Matter remanded to Tribunal. Referred Vijaya Bank v. CIT (2010) 323 ITR 166 (SC).
PCIT. v. United Spirits Ltd (2022) 284 Taxman 568 / 442 ITR 451 (Karn.)(HC) PCIT v. Mcdowell and Co. Ltd. (2022) 284 Taxman 568 / 442 ITR 451 (Karn.)(HC)
S. 36(1)(vii) : Bad debt-Required to debit profit and loss account and also to simultaneously reduce loans of debtors in balance sheet-Matter remanded. [S. 254(1)]